Buying Shares With Super?

[Muttley]

Have only been in the country a few years and dont have loads of superannuation or anything but is so annoying watching it constantly go down.

 

Anyone know if its fairly straight forward to get your money out of a bank run fund and into some shares or if its even possible?

 

Cheers

[Parley]

Most if not all funds allow you to switch between investment options, eg growth, capital stable, cash etc.

I would caution against switching now though as you may lock in a loss.

[Muttley]

Most if not all funds allow you to switch between investment options, eg growth, capital stable, cash etc.

I would caution against switching now though as you may lock in a loss.

 

Thanks

 

Where some specific LSE listed shares that I wanted to dump it all on, think could do this?

[Ken]

Have only been in the country a few years and dont have loads of superannuation or anything but is so annoying watching it constantly go down.

 

Anyone know if its fairly straight forward to get your money out of a bank run fund and into some shares or if its even possible?

 

Cheers

 

To have the full flexibility to choose which shares to invest in you need a Self Managed Super Fund. Unfortunately if you don't have loads in your Super the administration costs of an SMSF mean it's unlikely to be worth your while.

[Muttley]

To have the full flexibility to choose which shares to invest in you need a Self Managed Super Fund. Unfortunately if you don't have loads in your Super the administration costs of an SMSF mean it's unlikely to be worth your while.

 

Thanks

 

Had suspected as much

 

A quick google suggests that the admin fees might be around 1k a year? Does it cost a decent amount to get it up and running?

 

I swear the useless shites must lose me 1k a year so if the startup costs arent horrific could still be worth a look perhaps?

[Ken]

Thanks

 

Had suspected as much

 

A quick google suggests that the admin fees might be around 1k a year? Does it cost a decent amount to get it up and running?

 

I swear the useless shites must lose me 1k a year so if the startup costs arent horrific could still be worth a look perhaps?

 

Sorry don't know the costs involved. If you talk to someone who sets these up they shouldn't charge anything for a first meeting - or perhaps someone here on PIO has set up an SMSF and is willing to share their experience?

[Marisawright]

Have only been in the country a few years and dont have loads of superannuation or anything but is so annoying watching it constantly go down.

 

Anyone know if its fairly straight forward to get your money out of a bank run fund and into some shares or if its even possible?

 

 

It sounds like you're in the wrong super fund. There are good ones and bad ones. Some of the bank ones have a really bad reputation for charging humungous fees and not performing well.

 

Your easiest option is to switch to another fund that has a good reputation and performs well. Here's the best performers for 2014/15:

 

http://www.superguide.com.au/boost-your-superannuation/top-10-performing-super-funds-for-20142015-year-and-for-past-10-years

 

http://www.superratings.com.au/top-tens/returns

 

If you're really anti-fees then all the industry super funds are non-profit and therefore have lower fees. Some would argue that though the retail funds charge higher fees, they can also offer higher returns - not convinced myself but do your research and decide for yourself.

 

http://www.industrysuper.com/

 

It's very easy to transfer the funds - just contact the new super fund of your choice, fill in a form and they'll organise it. Just remember to check their fees carefully, some of them will automatically sign you up for insurance you may not want, and the premiums can eat into your profits.

 

To buy your own shares, you would have to start your own self-managed super fund - but it's not a good idea unless you have a lot of money to invest. Been there, done that. There are all sorts of rules and regulations, and you're obliged to employ an accountant- so in the end, it does cost you more in fees than leaving the money in an industry fund.

 

Also if you ever decide to go back to the UK you have to close it down and that's a nightmare too - you have to sell all the holdings and that could mean taking big losses if you happen to be leaving at a bad time in the share market.

Edited January 16, 2016 by Marisawright

[scuffythetugboat]

I'm with Australian Super. I was not happy with my balance going down with the stock market and the prospect of it sinking further so about four months ago I put all my money into cash. Now it doesn't go down. Now I'm happy.

[BillyBaxter]

Best thing since sliced bread: SMSF. Get one and invest in blue chips on ASX. I use Michael Holmes in Canberra. Knows his stuff. I pay about $4000 in fees now.....it based on how long it takes him. But your balance will grow and this fee becomes irrelevant over time.

[Marisawright]

Best thing since sliced bread: SMSF. Get one and invest in blue chips on ASX. I use Michael Holmes in Canberra. Knows his stuff. I pay about $4000 in fees now.....it based on how long it takes him. But your balance will grow and this fee becomes irrelevant over time.

 

 

A word of warning though - don't do it if you have any doubts that you'll be staying in Australia permanently. If you ever leave Australia, you can't keep a SMSF running (well you could, but you'll be stung for over 40% tax). So that means it has to be wrapped up and closed down - bad news if it happens to be at a bad time in the market and you have to realise losses.

[newjez]

Thanks

 

Where some specific LSE listed shares that I wanted to dump it all on, think could do this?

 

Putting super into individual companies comes with risk.

 

Individual companies can go bust. It is less likely a fund would go bust.

 

As parley says you could lock in a loss. Or you could avoid future losses. Your choice.

 

You could even wack it into a resources fund if you are feeling risky.